Telenor's Bulgarian unit posts 8% y/y drop in Q2 EBITDA, revenue falls 7.6% y/y [IntelliNews - Weekly Reports]
(IntelliNews - Weekly Reports Via Acquire Media NewsEdge) Globul, the second-largest mobile operator in Bulgaria, said its EBITDA (a key performance measure for telecoms) fell 8% y/y to BGN 61.8mn (EUR 31.6mn) in the second quarter of 2014 mainly due to one-time discounts the company benefited from in the same period last year. Excluding one-off items last year, EBITDA was 2.3% higher in Q2 2014 thanks to lower marketing, sales and administrative costs.
The EBITDA margin ticked down by 0.2pps y/y to 39.7% in Q2. Excluding one-off items last year, the EBITDA margin increased by 6pps.
Globul's revenue fell 7.6% y/y to BGN 155.6mn in Q2 due to the regulatory reduction in mobile termination rates (MTR) and lower handset sales. Its services revenue alone fell 5.5% y/y and ARPU in local currency decreased by 6% y/y to BGN 11.
Globul's active customer base grew 2% y/y to more than 4 million in Q2, with post-paid subscriptions up 3.4% y/y to 2.8 million and pre-paid clients down 1.1% y/y.
For the first half of 2014, Globul reported EBITDA of BGN 117.5mn, down 1% y/y, and revenue of BGN 302.9mn, down 7.5% y/y.
Norway's Telenor acquired Globul in August 2013 for EUR 717mn. The transaction also included Germanos Bulgaria - a telecom retailer operationally integrated with Globul. The parent company announced earlier this month that it has completed the merger of its telecom and retail units in Bulgaria.
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